Exhausted Porsche Largely Exits the Battery Business

Source: dpa | Translated by AI 1 min Reading Time

The Stuttgart-based sports car manufacturer Porsche plans to largely shut down its subsidiary Cellforce, which focused on batteries, according to dpa.

End for Cellforce! The sports car manufacturer Porsche once aimed to be a pioneer in electric vehicles with battery supply. For this, the company Cellforce was established. Now, the electric dream has apparently been shelved ...(Image: Porsche)
End for Cellforce! The sports car manufacturer Porsche once aimed to be a pioneer in electric vehicles with battery supply. For this, the company Cellforce was established. Now, the electric dream has apparently been shelved ...
(Image: Porsche)

At the end of April, Porsche announced that it would not continue to operate its battery cell subsidiary independently. Investors were sought, but neither BMW nor other interested parties took the opportunity. According to dpa information, the jobs of nearly 200 employees at Cellforce are at risk due to Porsche's decision. As previously reported by Spiegel, a corresponding mass layoff has already been filed with the responsible employment agency in Reutlingen. At Cellforce's location in the Swabian town of Kirchentellinsfurt, only a small unit for research and development would remain. Porsche CEO Oliver Blume has already informed the state government, led by Prime Minister Winfried Kretschmann, about the plan. However, the settlement was also supported by taxpayers' money, with around 60 million euros (approx. 70 million USD) initially announced.

Oliver Blume May be Facing an Unfortunate Setback

How much money actually flowed remains unclear for now. However, a Porsche spokeswoman declined to comment on the matter. A spokesman for Kretschmann stated that they generally do not comment on internal discussions. For VW subsidiary Porsche, the end of Cellforce marks a significant step. CEO Blume had aimed to transform the sports car manufacturer into a pioneer of electric mobility with its own battery production. However, the transition to e-mobility is progressing much more slowly than expected. Since the beginning of the year, Porsche has also been investing again in new combustion engines. Now, with his ambitions, the manager, who also leads the Volkswagen Group, faces a setback. According to the report, the write-offs on Cellforce's production facilities cost Porsche 295 million euros (approx. 345 million USD). The Cellforce employees could now face unemployment because, unlike its parent company VW, no employment guarantee exists there.

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